Cerveza Company Has Two Service Departments, Maintenance and Personnel, as Well

question 74

Multiple Choice

Cerveza Company has two service departments, Maintenance and Personnel, as well as two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees. The following information has been gathered for the current year: $$\begin{array} { l l l l l } \text { Maintenance } & & \text { Personnel } & \text { Mixing } & \text { Finishing } \\\text { Direct dept.costs } & \$ 50,400 & \$ 33,600 & \$ 42,000 & \$ 70,000 \\\text { Square footage } & 1,600 & 800 & 3,200 & 2,400 \\\text { Number of employees } &16 & 24 & 48 & 64\end{array}$$ If the step- down method of allocating costs is used and the Personnel Department is allocated first, then the amount of overhead that would be allocated from Personnel to Maintenance is:

• A) $13,440
• B) $4,200
• C) $3,539
• D) $0

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Definitions:

Nutritional Value

The content of essential nutrients in a food item, such as vitamins, minerals, and proteins, which contribute to its overall health benefits.

Social Experience

The interaction and communication between individuals in social environments, which can influence attitudes, perceptions, and behaviors.

Extra Servings

Refers to the provision of additional portions or servings of a product or service, often used in food-related contexts to indicate offering more than the standard amount.

Multichannel Marketing

A marketing strategy that integrates various communication channels, such as email, social media, and brick-and-mortar stores, to interact with customers.